Ariana Resources Share Discussion Threads

[bigglesbingham] 27/7/2021 18:45

The BoD are two of the major shareholders. If there are tax advantages (and They wouldn't have said it if there weren't) of splitting then it will benefit shareholders because more profit. The 0.7p dividend was due to distributable reserves. So not sure how you can say BoD making decisions based on sound business principles is a fiasco? It took longer and shareholder expectations were not managed imho but communication is where they have always let themselves down. They run the company extremely well but there is a subtle quality lacking and that is they don't empathise with shareholders and they will argue that this is responsibility of yellow jersey but they chose yellow jersey and they must take responsibility and action in my view.

[konil] 27/7/2021 18:40

jaf, i share your frustrations and you raise some interesting points though i interpret things a little differently, unless information to the contrary comes to light.

i did not like the divi surprise they sprung on us but if its to the benefit of the company i.e. company pays less tax on the payout and hence retains more cash in its bank then it does benefit shareholders in theory. they could however have handled the information flow much better.

so far i have not seen management behaving in anything other than a business like manner towards the purpose of growing the company which benefits all shareholders of course but the big caveat is i cannot see inside the company so wdik.

undervaluation can linger for long periods of time and imo things like detailed drill results as superb as they may be are not the catalyst required to change that. mining is a slow burn industry with rewards for young developing companies not coming smoothly but in fits and starts.

if the market is already awake to aau's business then we have to accept the current valuation as being more or less correct. but i dont think it is correctly valued - those that have bought in know the attractions but i'm not sure many others do. it doesn't take huge amounts of research but probably just enough so that most wont go beyond a cursory looksee so at least for now it remains a hidden gem.

i guess we're all waiting for something to change all this, whether its aau generated or external by way of the gp, and zip the share price up a few notches!

[jaf1948] 27/7/2021 16:22

konil,

Personally, and I know I keep mentioning it, I think the market is already awake to Ariana but see it as a well-run profitable company but run for the benefit of the BoD not the shareholders. For example, the latest fiasco about splitting the dividend into three tranches - for tax purposes, says the company, which ultimately benefits the shareholders they say. Perhaps the shareholders would have a different opinion if asked.

It's a good investment IMO, but only if time is of no issue to you.

[konil] 27/7/2021 14:39

charles, you could be right.

they have failed to provide guidance on regular dividend policy but one would hope another 12 to 15 months would give them enough time to formulate a policy, and i'm guessing the way they have structured the special dividend (i'm not a fan) will lead nicely onto regular payouts after the 3rd tranche next year. hopefully the jv distributions to partners will have bedded in by then.

with the stagnant share price and the stagnant gp, and the surprise of the staged payment of special dividend and what seems to be a delay to tavsan production beyond what i (perhaps incorrectly) thought would be a 12 month delay, its all too far out for me currently.

nothing aau can do about the share price or the gp and imo they are moving well operationally so just have to sit on my hands.

like i said earlier, hope the c.7% near term payout will wake up the market.

[charles clore] 27/7/2021 12:28

konil - you state that 'some say stockmarket looks forward 18 months but for mining projects perhaps not so'. I think that for producers paying a dividend this is true. However, we are not quite there yet. Not quite! But almost.

[soulsauce] 27/7/2021 11:04

Cheers konil great post.

[konil] 27/7/2021 10:42

soul, no probs. simplistic extrapolation from today's rns suggests that if they can do 11,000oz in h2 2021, then on a fy basis it could be 22,000oz for 2022 onwards and maybe more if they tap into some of the higher grade stuff they have been finding. also mine life should go well beyond 2025, which gives time to replace kizil oz from other projects as kizil eventually winds down.

looking further, some say stockmarket looks forward 18 months but for mining projects perhaps not so. anyway if tavsan doubles output in 2023 it should do something for the share price sooner or later. and hopefully ozaltin will have got into top gear by then so who knows how far salinbas will be by then.

for blue sky excitement there is cyprus and whatever else ks is cooking up.

maybe pm bull will start running again to add further excitement, its had a long pause to digest the rise, but qe and the wider covid related economic problems have not gone away. basel3 for uk banks in jan 2022 could be interesting.

aau is maturing nicely but not exciting the market just yet. prospect of a c.7% return by sept probably too opaque for the market but should be clear once they announce paydate, maybe that will draw attention and catalyse something of a rerate to address the current undervaluation.

[xow98] 27/7/2021 10:36

BY NIGEL SOMERVILLE, THE DEPUTY SHERIFF OF AIM

AIM-listed Gold producer in Turkey Ariana Resources (AAU) has this morning updated the market on Gold production from its 23.5%-owned Kiziltpe plant. The numbers aren’t all that great, but we knew that already as lower grade ore is being processed at the moment, but the accompanying update on the plant capacity expansion offers much hope.

[bigglesbingham] 27/7/2021 08:31

The Kiziltepe operation is currently targeting an increase in mine life and an enhanced processing rate of 400,000 tonnes of ore per annum, with operations currently expected to conclude during 2025. The joint venture is confident that an increase in mine life can be achieved following the success of recent exploration and assuming the conversion of existing resources to reserves.

[soulsauce] 27/7/2021 08:11

And maybe a return to the higher grade ore at Arzu South Renniks.

[renniks2016] 27/7/2021 08:04

New processing plant up and running, just not fully automated yet, a couple of weeks and full steam ahead, H2 figures will be interesting as they have a gap to close to get to 19k oz, but next year could be stunning when start sprinkling in high grad ore from the bonanza belt and Kepez.

[soulsauce] 27/7/2021 07:57

Apologies konil it was me who had misunderstood.
Good news anyway. New processing plant almost up and running and loans soon yo be completed.

[uknighted] 27/7/2021 07:19

RNS 2021 Production Update

Dr. Kerim Sener, Managing Director, commented:

"The past six months have again provided production at Kiziltepe which exceeds forecasts, largely as a result of the higher-than-expected average grade that has been maintained through the processing plant. We are now looking forward to seeing the effect of the processing plant expansion, which is nearing completion, with process plant throughput already increasing during July. Once full-automation of the new system is established, around mid-August, we are expecting process throughput to increase to a nominal 400,000 tonnes of ore per annum, enabling us to maintain our guidance of circa 19,000 ounces of gold production for the year.

"The JV finances are in great shape, with repayments continuing against its working capital loan from Turkiye Finans Katilim Bankasi A.S., which is now over 90% complete, with a final repayment of US$0.8 million to be made in October 2021. Meanwhile the new loan facility from Turkiye Garanti Bankasi A.S., which provided the capital required for the plant expansion, is a third repaid."

[bigglesbingham] 26/7/2021 21:42

Keep the info coming excellent posts as usual !!!

[8rad] 26/7/2021 18:50

Masterg1 are you Kerim in disguise?

[masterg1] 26/7/2021 18:28

it's about procedure, law of the land and shareholder rights. Filing the accounts at Companies House now or before 30 September 2021 makes no difference it is simply matter of admin. AGM is the shareholders chance to vote - be it to approve the accounts or the election/re-election of directors, approval of final dividends etc.
Generally speaking the shareholders can reject the accounts for example if there were excessive directors bonuses. The accounts may need amending and further consequences. Similarly with interim figures directors like to see the latest figures in terms of distributable profits, bank balances and future commitments for the timing of payments. Any dividends paid in excess of distributable profits would makes those dividends illegal, as well making the directors potentially personally liable. The directors will want to have the reassurance of the latest figures before making any important financial decisions. The dates are their prerogative as office holders discharged with such duties.

[masterg1] 26/7/2021 16:16

Plasybryn - Only the final dividend for the year is voted upon at the AGM. The 0.35p Share special dividend is going to be the first interim dividend for the year ended 31 December 2021(current year)and Board will confirm the dates in due course. The second payment of 0.175p will also be an interim dividend for the same year. The final dividend of 0.175 will be voted upon at the AGM next year along with the accounts. No votes required for the interim dividends, the board of directors just need to make sure sufficient distributable reserves are available and cash resources to fund the payment. The board can declare interim dividends anytime subject to distributable reserves(profits) and cash resources.

[plasybryn] 26/7/2021 15:50

masterg1: Thanks, but Co's often announce their dividends and the dates subject to AGM (shareholder) ratification. Is this the ultra cautious Kerim Sener again at work!? As though shareholders would vote it down. Or perhaps on reflection, some will indeed object to the three tranche strategy.

[masterg1] 26/7/2021 15:21

Plasybryn - Company accounts once signed by the auditors can be filed at Companies House without delay. Normally they would had to been filed by 30 June 2021 for Ariana Resources plc. This year like last year the deadline has been extended to 30 September after the year end. They can filed without any penalties up to that date.
I suspect the dividend dates will be announced after the formal approval of accounts at the AGM or even wait for the interim accounts figures to be published. It is the Company responsibility to file the accounts to Companies House, which they may delegate to a third party like external Auditors/Accountants etc.

[zangdook] 26/7/2021 15:16

He's just moved around a little bit, he hasn't managed to escape from the room.

[plasybryn] 26/7/2021 15:16

I was interested to see on page 38 of the AR & A this statement:
" Recently we have built a new road to the village in our Salinbas Project area".
Wonder if Ozaltin did that? Shows they are serious about getting on with things at Salinbas.

[xow98] 26/7/2021 15:11

Plas, submissions are down to the Company Secretary, or whomever they delegate it to, but it is still their responsibility.

[jd 1965] 26/7/2021 15:08

Upbeat interview by Kerim very promisinghttps://youtu.be/x0mn8VWcnHc

[plasybryn] 26/7/2021 12:47

xow98: Would the job of submitting the Audited Accounts to Companies House, be for the Auditors, PKF Littlejohn? As everything went to plan this year, I can see no sensible reason for a delay. However we don't know if the Accounts for the Exploration & Development Co. have been signed off - do we? Any delay that effects confirming the dividend dates, certainly won't ingratiate shareholders, who feel this has taken a long time already! Fingers out time!!